Private Health Insurance Provides Extra Protection For Australians

Summary of Medicare Benefits

Health insurance is available to all Australians through Medicare, the government’s public health system that provides free treatment in hospitals and government-subsidized treatment for out-of-hospital treatment. This public insurance offers benefits, particularly cost savings, but it doesn’t cover every possibility you or your family may experience throughout your lives. That’s why purchasing private insurance is a very good idea.

The typical expenses Medicare covers include:

100 percent of your in-hospital costs

75 percent of your General Practitioner’s costs

85 percent of any specialists’ costs

Some tests, including x-rays, examinations and pathology tests

Prescription medicines and some immunizations

Other subsidized tests for which you may be eligible

Summary of Private Health Insurance Benefits

Private health insurance covers a myriad of expenses not covered under Medicare. While there is an extra cost associated with private health insurance, there’s a very high likelihood that you will need at least one procedure, piece of equipment or test during your lifetime that you’ll have to pay for out of your pocket if you choose to be covered by Medicare only. Most private health insurance offers both hospital and ancillary coverage, which most people purchase in a combination policy.

Most private health insurance plans will expect you to pay an excess, or a co-payment, when you receive treatment. The amount depends on how much you pay in premiums. An excess is charged when your hospital expenses exceed the amount your private health insurance covers. You pay the difference. A co-payment is a set amount you agree to pay for each day you’re treated in the hospital.

Ancillary coverage

Some of the ancillary expenses covered by private health insurance can include:

Eye care expenses such as glasses or contact lenses and eye therapy

Hearing aids and other types of hearing appliances

Dental exams and treatment that isn’t part of of the Chronic Disease Management (CDM) program

Therapies, including physiotherapy, speech therapy, chiropractic services, podiatry services and psychological therapy unless it’s specifically included in the CDM program

Private hospital costs

Ambulance services

Home nursing

Prostheses costs, except for those covered by the External Breast Prostheses Reimbursement Program

Medical costs that someone else is responsible for paying, such as an employer or a compensation insurer

Medium Cover includes general, major and endodontic dental coverage, as well as expenses for any of five of the following services: orthodontic, optical, certain pharmaceuticals, physiotherapy, chiropractic, podiatry, psychology, and hearing Aids services

Basic Cover is the least expensive of the private health insurance ancillary policies

Extra Benefits of Private Health Insurance

In addition to coverage of current medical expenses, you have the option through private health insurance of pre-paying for hospital coverage you may need years in the future. Lifetime Health Cover is a government initiative begun in 2000 that encourages you to take out hospital insurance at a young age and to maintain that coverage.

The younger you are, the less expensive it is to pre-pay, or load the hospital cover. If you purchase hospital insurance by July 1 following your 31st birthday, you won’t have to pay a loading charge. If you are older than 31 when you purchase the coverage, you’ll be required to pay a percentage of the coverage you purchase, depending on your age.

The Private Health Insurance Rebate offers another financial incentive for purchasing private health insurance. The government provides subsidizes both private and ancillary coverage for between 30 and 40 percent. The government has also developed a negative incentive for people who don’t purchase private health insurance.

If your taxable income is above specified levels, you’ll be required to pay the Medicare Levy Surcharge, a percentage levy above the standard Medicare Levy. The Medicare Levy Surcharge is assessed whether or not you have private hospital costs you must pay out of your pocket.

Finally, with private health insurance you can avoid long waits to see doctors that are part of the public hospital program, or to schedule non-emergency procedures. In addition, you’ll be able to choose the doctors and hospitals you prefer.

So it’s easy to see that purchasing private health insurance is a good idea to help you manage your health care expenses. You’ll have peace of mind, knowing that you and your family will receive the health care you prefer.

Disclaimer: The above information is correct and current at the time of publication

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